Accelera by Cummins Awarded $75 Million for Zero-Emissions Manufacturing from Department of Energy

Cummins to invest a total of $150 million in battery electric vehicle component manufacturing and job creation

July 11, 2024 02:00 PM Eastern Daylight Time

COLUMBUS, Ind.--(BUSINESS WIRE)--Cummins Inc. (NYSE: CMI) announced today that the company has been awarded $75 million to convert approximately 360,000 sq. ft. of existing manufacturing space at its Columbus (Indiana) Engine Plant (CEP) for zero-emissions components and electric powertrain systems. The $75 million grant is the largest federal grant ever awarded solely to Cummins and is part of the appropriations related to the Inflation Reduction Act.

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Cummins will match the grant and invest $75 million for a total of $150 million to convert the space and expand production of battery packs, powertrain systems and other battery-electric vehicle (BEV) components for Accelera by Cummins, the company’s zero-emissions business segment. To support this additional manufacturing capacity, Cummins anticipates adding approximately 250 full-time jobs, with opportunities for the plant’s existing workforce to transition to many of these positions over time.

“This DOE grant is another step forward in the progress we are making toward a zero-emissions future and expanding battery manufacturing in the United States, strengthening our global position in electrified solutions for commercial markets,” said Amy Davis, President of Accelera by Cummins. “Today’s announcement represents a crucial step in advancing electrification and domestic battery supply chains. Partnership with government, customers, and the industry as a whole is required to accelerate the shift to zero. We are proud of this milestone and to be adding clean tech jobs to develop the workforce and communities of the future.”

After the completion of this project, CEP will house approximately 350 employees focused on BEV-related work. Nearly half of the 1.42 million sq. ft. facility, which opened in 1926, will be dedicated to zero-emissions manufacturing. The electric powertrains produced at CEP will result in greenhouse gas emission reductions of approximately 104 million metric tons of carbon dioxide by 2030.*

Through its Destination Zero strategy, Cummins is committed to helping customers seamlessly and successfully transition to a zero-emissions future and understands that a variety of solutions are required to reach this goal. The company is unique in its ability to meet customers’ needs wherever they are in their journey, offering fuel-agnostic engine platforms powered by advanced diesel, natural gas and alternate fuels; fully electric and hydrogen fuel cell solutions; and key components. Cummins continues to be committed to advancing all of these solutions.

"Known as Plant One, CEP was Cummins’ first engine plant in our headquarter city of Columbus, Indiana, and this grant from the DOE allows us to broaden the legacy of the site even further. By expanding the production of batteries and electric vehicle components at CEP, at the same plant where we manufacture blocks and heads for our current and next-generation, engine-based solutions, we continue to prove our commitment to Destination Zero and dedication to innovation, strengthening the communities we serve and environmental stewardship,” said Jennifer Rumsey, Chair and CEO of Cummins. “As a Columbus native, I am especially proud of the significant contribution Cummins is making to economic and social vibrancies of the local community alongside our broader goals of improving and decarbonizing commercial and industrial applications.”

“As a City, Columbus has benefited from Cummins’ innovative spirit and technology investments for over 100 years,” said Mary Ferdon, Mayor of Columbus. “This expansion by Accelera reinforces the commitment the company has made to clean energy and a more sustainable future. Columbus also benefits from the re-investment in our workforce and the conversion of CEP space for advanced technology. We’re excited about this $150 million investment which moves the company forward in its zero-emissions manufacturing and de-carbonization goals and we’re proud to celebrate this milestone award from the Department of Energy.”

*Emissions reduction of BEV compared to ICE heavy-duty commercial vehicles

About Cummins Inc.

Cummins Inc., a global power solutions leader, is comprised of five business segments – Components, Engine, Distribution, Power Systems and Accelera by Cummins – supported by our global manufacturing and extensive service and support network, skilled workforce and vast technological expertise. Cummins is committed to its Destination Zero strategy, which is grounded in the company’s commitment to sustainability and helping its customers successfully navigate the energy transition with its broad portfolio of products. The products range from advanced diesel, natural gas, electric and hybrid powertrains and powertrain-related components including, aftertreatment, turbochargers, fuel systems, valvetrain technologies, controls systems, air handling systems, automated transmissions, axles, drivelines, brakes, suspension systems, electric power generation systems, batteries, electrified power systems, hydrogen production technologies and fuel cell products. Headquartered in Columbus, Indiana (U.S.), since its founding in 1919, Cummins employs approximately 75,500 people committed to powering a more prosperous world through three global corporate responsibility priorities critical to healthy communities: education, environment, and equality of opportunity. Cummins serves its customers online, through a network of company-owned and independent distributor locations, and through thousands of dealer locations worldwide and earned about $735 million on sales of $34.1 billion in 2023. See how Cummins is powering a world that's always on by accessing news releases and more information at https://www.cummins.com/.